Toys R Us Closes on $3.1 Billion in Financing, Awaits Court Approval

Toys R Us has closed on $3.1 billion in financing designed to fund the chain during bankruptcy and allow for store remodeling, but is awaiting court approval. A hearing in U.S. Bankruptcy Court, Richmond, VA. is set for Oct. 10.  A U.S. Bankruptcy Court Judge gave interim approval for the company to access $2.2 billion in debtor in possession (DIP) financing late last week, the company said. The chain filed for bankruptcy on Sept. 18, citing $4.9 billion in debt with $400 million in payments due in 2018.  Toys R Us also has filed separately in Ontario Superior Court for its 82 stores in Canada. The chain’s Canadian arm, which operates as Toys Canada, doesn’t have an obligation to the U.S. creditors. But the retailer’s bankruptcy filing in the U.S. resulted in its loans being terminated and a demand for repayment, Toys Canada said in court documents.

Contact:

Toys R Us, Richard Barry, Chief Merchandising Officer, 973-617-5888, Richard.barry@toysrus.com

Scholastic’s Children’s Book Publishing Q1 Operating Loss Widens

Scholastic’s Children’s Book Publishing and Distribution business, struggling without a new Harry Potter title, saw its operating loss for Q1 ended Aug. 31 widen to $58.9 million from $36.2 million a year ago. The division’s revenue plunged to $66.8 million from $137.8 million a year earlier, which included “Harry Potters and the Cursed Child Part One and Two.” Scholastic’s international revenue also declined by 14.2% to $77.9 million due largely to a decline in sales of Harry Potter books in Canada, Scholastic said. The lower sales of Harry Potter books decreased Scholastic’s royalty costs 64% to $18.1 million. Overall, Scholastic’s Q1 net loss grew to $63.7 million from $39.5 million a year ago as revenue fell 33% to $189.2.

Contact:

Scholastic, Maureen O’Connell, Chief Financial Officer, moconnell@scholastic.com

Rubie’s Costume Co. Buys New York Retail Location

Rubie’s Costume Co. purchases the long-time home of New York Costumes/Halloween Adventure for more than $20 million, potentially setting the stage for a new showroom, Rubies’ Howard Beige said. A Rubie’s affiliate purchased the 26,401-square-foot retail condominium at 800 Broadway earlier this year, giving, for the time being. a fourth retail location joining others in Richmond Hill, Queens, and Melville and Westbury on Long Island, all designed more as “experiential” stores than transaction-based retail outlets, says Beige. “When we purchased it one of the options was to make it a new showroom,” says Beige. Rubie’s has no immediate plans for additional stores,. It currently has a 22,000-square-foot showroom in New York at 1115 Broadway.

Contact:

Rubie’s Costume Co., Howard Beige, EVP, 516-326-1500, howard@rubies.com

Executives:

Named at New NBA Players Association subsidiary National Basketball Players Inc.: Que Gaskins, ex-Def Jam Records, as Chief Brand and Growth Officer; Josh Goodstadt, ex-HBO, as Executive VP of Licensing; Clarence Nesbitt, ex-Nike, as General Counsel…  Alysia Borsa, Meredith Corp.  EVP Chief Data and Insights Officer, named Chief Marketing and Data Officer…. Kohl’s CEO Kevin Mansell to retire effective May, to be replaced by Chief Merchandising Officer Michelle Gass; COO Sona Chawla named President… Buyseasons Inc. CEO Rick Barton retires following sale of company to Rubie’s Costume Co